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In a new revelation Kokang rebels sheltered in China’s southwest Yunnan province are allegedly into illegal amphetamine production in the dam construction sites of Burma-Asia World Company in Kachin State, in northern Burma. This was revealed by sources close to the rebels.[IMGL="black"]http://burmadigest.info/wp-content/uploads/2009/09/kokang.jpg[/IMGL]

The amphetamines, also called Yama tablets are being produced in the dam construction sites jointly operated by ASW and the Chinese state-owned China Power Investment Corporation (CPI) in Kachin State, since last year, added the sources.

Currently, the Chipwi dam in N’Mai Hka River and Myitsone dam in Irrawaddy River, or Mali Hka River are being constructed by the two companies, where the illegal drugs are produced. The sites are provided security by Burmese security forces, the sources added.

There are several hundred labourers in the two dam sites and all workers are Chinese except those into road construction and the day labourers.

In early July, about 300 Kokang troops led by Peng Daxun, eldest son of absconding Kokang leader Peng Jia-sheng sneaked into areas controlled by former New Democratic Army-Kachin (NDA-K) in eastern Kachin state, bordering Yunnan province, from the Chinese border town Nansan, opposite Kokang territories in Northeast Shan State.

Peng Daxun’s troops were given shelter in the Chinese border city Nansan along with their arms by Chinese authorities in the wake of the fall of Laogai, the capital of the Kokang rebels, or the Myanmar National Democratic Alliance Army (MNDAA) to the Burmese Army in August, last year.

The rebel capital was seized by Burmese troops on the allegation that they were producing illegal drugs and weapons.

Peng Daxun’s troops have been secretly producing amphetamines in the dam construction sites before they entered Kachin State from Nansan, said sources.[IMGR="black"]http://www.myanmar-narcotic.net/heroin/new2003/july3a.jpg[/IMGR]

Recently, Peng Daxun’s men were said to have explored the illegal drug market on the Burma-Bangladesh border, said sources close to him.

The illegal drug production done in utmost secrecy has the cooperation of the AWC owned by Burmese drug lord Lo Hsing Han and Peng Daxun’s Kokang troops.

Lo Hsing Han and Kokang leader Peng Jia-sheng are close relatives and the sons of the two --- U Tun Myint Naing, a.k.a Steven Law, son of Lo Hsing Han and Peng Daxun son of Peng Jia-sheng are also close and have businesses links, said sources close to them.

Peng Daxun has business investments in companies in Singapore through U Tun Myint Naing, who is married to a Singaporean.